Sell goods to Northern Ireland and EU consumers
Summary
Description
Overview for businesses in Ireland
On 1 July 2021, the EU introduced an optional VAT scheme for the sale of goods to EU customers who are not VAT registered (also known as EU consumers).
Instead of having to register and pay VAT in each country you sell to, you can choose to report and pay EU VAT through a single return using the One Stop Shop (OSS).
Alongside the introduction of the OSS, the EU abolished distance selling thresholds. This means you may now have distance sales of goods which are subject to destination VAT. You can use OSS to report intra-community distance sales of goods.
If you use OSS you will need to charge destination VAT at point of sale. Instead of charging VAT at the Irish rate (or home rate), you will charge VAT at the rate where your customer lives.
This means there is no import VAT upon arrival in the EU, making it easier for your end customer.
Resolution
Create a sales invoice with destination VAT
Before you start
If you need to charge destination VAT you first need to apply destination VAT in settings.
- Go to Sales, Sales Invoices, and select New Invoice.
- In the Customer field, select your customer from the list, or type the customer name. If the customer is not a saved contact, select Add a customer to create a record for them.
- On the first invoice line, select a product from the list, or start typing its name to find it. If the product is not a saved item, enter a description for the item or select Create item to create a record for it.
- In EU Goods/Services select Goods (and related services) to apply destination VAT rules. The destination VAT rate will automatically calculate.
TIP: To calculate destination VAT on the invoice, check that you selected:
Destination VAT rules in financial settings
An EU or Northern Ireland customer that is not VAT registered
Repeat steps 3 and 4 on a new line for as many items as you need to add to your invoice. - Select Save.
The VAT Return
Sales of goods are reported in box E1 - value of goods sent to other EU countries.
The VAT element on destination VAT sales is excluded from your VAT Return. You need to report this on your OSS VAT Return through the OSS system.
Destination VAT report
The OSS Sales Analysis in Reporting shows all sales where destination VAT has been charged. This will help you to complete your OSS VAT Return through the OSS system.
Related Solutions
Solution Properties
- Solution ID
- 222001000101263
- Last Modified Date
- Tue Dec 05 06:53:05 UTC 2023
- Views
- 0